20 January 2015
Selecting an Agent
Hi I’m Michael McDonald, CEO of Raine & Horne South Australia. I have been in the real estate industry for nearly 20 years as a salesperson, property manager, and agency principal. I have also worked as industry educator and consultant to the marketplace in general.
On behalf of Raine & Horne, I would like discuss with you a few of the important decisions you will need to make when you are thinking of selling your property.
Real estate, like all business, is very competitive. Agencies and the sales representatives they employ like to have as many properties to sell as possible. This way they make more sales and so make more money.
But in some instances, it is this desire for properties that can lead to sales practices which are often not in your best interests.
Two common practices that some unscrupulous agents use, in an attempt to convince prospective clients that they should list their property with them are to offer to reduce the sales commission they will charge or another is offer to pay for some or all of the advertising required to market your property effectively.
Really, there are few of us that would not be tempted by such offers. After all, aren’t all real estate agents the same? Surely these concessions can’t hurt my prospects when it comes to selling my property.
Well, it pays to understand a little of how the industry works so that you can really determine if your best interests are really being considered.
If the agent is prepared to cut their fees, in essence work for less, then what says that they won’t want you to accept less for your property? After all, if they are going to operate at a lower margin, they will need to sell properties quickly.
If the agent is prepared to pay for your advertising, wouldn’t it be plausible that they will want to do the least amount of advertising as possible to keep their costs down. This most certainly is not in your best interests, you really need to know that your advertising will be effective and due justice to your property. You need to know when your property will be advertised, how often, and where, and what they targeted to attract the right buyers.
As the seller, you really need to ask, “How is it that you can offer an acceptable service at reduced operating margins? Will we be paying for these reduced charges in some other way?” This other way may be less effective service, less effective advertising, or less interest from the agency as a whole toward you, the client. You may well lose a lot more than you think.
Don’t be afraid to ask hard questions of your agent. Raine & Horne agents take pride in their service and take every opportunity to explain their service differences. They will welcome your questions. After all, there is one old saying we all know very well, “You get what you pay for in this world.”
Contact Michael at email@example.com